Satisfying Investors Jul24

Satisfying Investors

Today’s real estate investors not only want the financial and operational numbers on their assets but what’s driving them. That includes environmental, social and governance (ESG) performance, which is becoming increasingly important to property occupants, investors and regulators.  In fact, many institutional investors who provide money for U.S. real estate companies incorporate ESG criteria into their investment decisions. Meanwhile, 85% of asset owners believe ESG factors are material to investment policy. And many states and municipalities have enacted laws requiring public disclosure of energy-use data. “Property owners required to report ESG data to investors and regulators need aggregated data that can be used for multiple purposes. Investors also want access to their energy information on the same system as the investment data,”says Joe Consolo, industry principal of Yardi Energy. That’s why boosting ESG performance and data accessibility is critical to sustaining asset value, mitigating risks and optimizing returns.  Many investment managers are discovering that the most efficient approach to ESG management is a technology platform that combines data for energy, property management  and investment management. Benefits of this single-platform approach to ESG performance include: A single source of the truth that encompasses the underlying asset and rolls into the investment structure and then to the investor. The result is faster, better-informed investor decisions and no errors from disparate systems becoming outdated. Full compliancewith increasingly stringent ESG compliance requirements, including accurate assessments of energy consumption and greenhouse gas emissions.   Energy consumption reductions of up to 30% with better data. Efficient submission of data required for ENERGY STAR certifications, successful ASHRAE Level 2 audits, GRESB® reports and energy-oriented financial incentives, also known as “green financing.” Risk mitigation through full visibility of operations. Higher LEED and ENERGY STAR scores that help attract investors and high-quality tenants.  Investor...

Meet Yardi Energy  

Did you know that by 2050, the total number of adults ages 65 and older is projected to rise to 85.7 million, roughly 20% of the U.S. population? Delivered by America’s Health Rankings, this data reveals the growth of the aging population (taking into account that we’re at 54 million seniors in the U.S. today). So how does this relate to senior living operators? Simply put, as the aging population continues to grow, the number of seniors residing in communities will likely increase. This affects more things than one, including energy consumption in these communities. More residents, expanding properties and increased services equals more energy use. And without technology built to monitor that consumption and identify areas for improvement, senior living operators face heightened costs. Fortunately, leading solutions like the Yardi Energy Suite equip you to reduce costs and enhance efficiency all while meeting state, county and local benchmarking regulations. We’re excited to show you around this single connected solution below, but you can view our Yardi Energy guide for even more insights. The rise in energy consumption As we’ve covered, with more seniors living in communities, energy consumption will naturally increase. But monitoring consumption — and strategizing ways to save energy and reduce costs — isn’t easy. That is, without technology to lend a hand. In fact, the average building wastes roughly one-third of the energy it consumes, according to the United States Environmental Protection Agency. This could be a result of not having the right solution in place to track consumption and identify savings opportunities. How to save Energy matters in senior living. With the right technology solution, you can save big time and boost efficiency all while meeting state, county and local benchmarking regulations (there are over 40 jurisdictions with mandatory...

Energy Innovators Jul05

Energy Innovators

Even as pandemic-driven lockdowns and stay-at-home mandates curtailed energy consumption in 2020, organizations in all types of industries remained focused on impactful conservation initiatives. Here’s a look at some of the companies that joined Yardi in receiving a 2021 ENERGY STAR® Partner of the Year Sustained Excellence Award, the highest honor bestowed by the U.S. Environmental Protection Agency and the U.S. Department of Energy for initiatives that reduce energy consumption and mitigate climate change. BENTALLGREENOAK. Along with achieving ENERGY STAR certification for 81 properties, the Seattle-based global real estate investor continued benchmarking its assets’ sustainability performance against internal best practices and peers. BentallGreenOak also used ENERGY STAR metrics to measure the success of its energy efficiency strategies. FOOD LION INC. The Salisbury, N.C.-based retail grocery store chain expanded its LED lighting retrofit program to 32 stores, saving more than 9.2 billion BTUs annually. It also earned ENERGY STAR certification for 919 stores, which encompass 89% of its portfolio. HEXION INC. The Columbus, Ohio, producer of thermosetting resins, coatings, adhesives and specialty resins executed 52 energy projects that produced $2 million in savings. It also conducted treasure hunts at 23 sites that identified 131 potential projects. The Columbus, Ohio, company’s energy management program has reduced energy intensity by 28% and saved $14 million in costs since 2014. INTERTAPE POLYMERGROUP INC.  The Sarasota, Fla., manufacturer of paper and packaging products achieved a 6.8% reduction in energy intensity over 2019, part of energy savings equivalent to $6.4 million since 2009. The company also participated in several ENERGY STAR certification, Challenge for Industry and Find the Treasure activities. MERCK & CO. INC.  The pharmaceutical and healthcare company issued a letter of intent to purchase 60 MW of solar energy, matching the amount purchased in 2019. The Kenilworth, N.J.-based...

Energy Bulletins Apr29

Energy Bulletins

The following information is courtesy of the Energy Information Administration, a statistical and analytical agency of the U.S. Department of Energy that collects, analyzes and disseminates energy information. Post-COVID consumption lags The U.S. will likely take at least a decade to return to 2019 levels of energy consumption and carbon dioxide emissions due to the impact of COVID-19 on the economy and global energy sectors. “The pandemic triggered a historic energy demand shock that led to lower greenhouse gas emissions, decreases in energy production, and sometimes volatile commodity prices in 2020,” says Stephen Nalley, the EIA’s acting administrator. Around the world, global demand for petroleum products in 2020 fell by 9% from the previous year. Just how long it will take production and consumption levels to return to their pre-pandemic levels depends on a range of factors including the pace of economic recovery, advances in technology and government incentives. “It will take a while for the energy sector to get to its new ‘normal,’” according to Nalley. Battery power charging up A significant number of battery energy storage systems will be added in the U.S. between now and 2050, at which time 59 gigawatts (GW) of battery storage will serve the power grid. Falling battery costs, growth in non-dispatchable renewables (such as solar and wind, which can’t be turned on or off at will) and tax credits are the key drivers of the capacity expansion. Wind becomes a force In 2019 and 2020, developers in the U.S. installed more wind power capacity than any other generating technology. Wind turbine capacity additions in 2020 totaled 14.2 GW, surpassing a record that had stood since 2012. The impending phasing out of the full value of the production tax credit spurred investments in this technology. Congress extended...

ARPA-E Projects Apr23

ARPA-E Projects

Buildings account for 72% of the United States’ electricity use and 40% of the country’s carbon dioxide emissions each year. The Advanced Research Projects Agency-Energy, which carries out R&D for the U.S Department of Energy, sponsors initiatives by businesses and academic institutions to improve buildings’ energy efficiency. Here’s a summary of some active ARPA-E projects. Promoting a healthy cold According to ARPA-E, 5% of CO2 emissions come directly from air conditioning, which uses refrigerants that are greenhouse gases. American Superconductor of Ayer, Mass., is developing a freezer that doesn’t rely on harmful refrigerants and would operate more energy-efficiently than conventional systems. American Superconductor proposes to use helium gas as the cooler’s refrigerant, superseding liquid refrigerants that are eventually pumped out to the external environment. The eventual goal is the cost-effective mass production of high-efficiency freezers that do their job without pollution-generating refrigerants. Efficiency in motion A team at Boston University is developing an occupancy sensing system designed to estimate the number of people in commercial spaces and monitor how that number changes over time. The proposed system would generate occupancy estimates using advanced detection algorithms that interpret data streams from sensors and cameras. The occupancy data would enable the building control system to manage the heating, cooling and air flow to maximize building energy efficiency and optimize comfort. This could go a long way in making Boston office space, indeed office space across the world, more efficient. The project could “dramatically reduce the amount of energy needed to effectively heat, cool and ventilate buildings without sacrificing occupant comfort,” ARPA-E says. New pane, new gain Single-pane windows that are present in many buildings don’t insulate as well as double-pane units. Unfortunately, replacing them with newer, more efficient windows isn’t always feasible because of costs, changes...

Energy Updates Dec30

Energy Updates

Here’s a roundup of recent reports from the Energy Information Administration, the statistical and analytical agency within the U.S. Department of Energy: Wind power flies high in 2020 Project developers expect more than 23 gigawatts of wind turbine generating capacity to come online in the U.S. in 2020, far more than the previous record of 13.2 GW added in 2012. The impending phase-out of the full value of the U.S. production tax credit at year’s end is leading to more capacity additions than average this year, just as previous tax credit reductions led to significant wind capacity additions in 2012 and 2019. Texas has the most wind turbine capacity among states, with 29.1 GW installed as of August 2020 and another 4 GW expected by the end of the year. Wind’s share of U.S. electricity generation increasing from 7.4% in 2019 to 8.8% in 2020 — more than any other renewable electricity generation source. That share is expected to reach 10.3% in 2021. CO2 emissions reach lows In 2020, carbon dioxide emissions from the U.S. energy sector could be 11% lower than in 2019, according to data collected through August and estimates through December. CO2 emissions are expected to fall by 19% for coal, by 13% for petroleum and by 2% for natural gas. Many of this year’s changes in energy-related CO2 emissions are attributable to COVID-19, including working from home, stay-at-home mandates, closed or limited operating hours for several types of businesses and travel restrictions. In April, monthly U.S. energy consumption fell to a 30-year low and emissions reached a record low. Winter bills holding steady U.S. households that primarily use natural gas or electricity will have slightly higher energy expenditures this winter, with households using propane spending 14% more and those relying...

Smart Sustainability Dec11

Smart Sustainability

Full-service real estate company LBA Realty is continuing its portfolio-wide partnership with Yardi Pulse® as the company implements a Smart Building Program to enhance their sustainability strategy. LBA and Yardi® conducted an initial proof of concept pilot at a single property. In January 2019, LBA Realty adopted a phased approach to roll out Meter Insights and Fault Detection to eleven office properties in four different states. Leveraging pulse modular capability, these initial solutions provide real-time electrical meter monitoring and analytics, as well as HVAC fault detection and diagnostics. This allows the LBA engineering team and Yardi’s consulting services to identify hidden performance issues including extended run time, overlap in HVAC mode conditions and an inefficient sequence of operations. LBA now receives timely and accurate energy use data for 5.9M square feet of their office properties. Year-to-date, the program has resulted in energy use reduction of 16.2M kWh, which equates to savings at $0.32 per square foot. After gathering quantifiable results, LBA is now entering the second phase of implementation, Pulse Building Optimization. “With Pulse Building Optimization representing our artificial intelligence software, we look forward to realizing our vision of bringing intelligent buildings to life,” said Perry Schonfeld, principal and chief operating officer of LBA. “It is exciting to see the progress LBA Realty has made with a phased approach to implementation and the value of their incremental steps. We foresee continued success of LBA’s energy platform and growth of the Yardi-LBA partnership,” said Akshai Rao, vice president at Yardi. Download a brochure to learn more about the Yardi Pulse...

ENERGY STAR Talks Tech Dec04

ENERGY STAR Talks Tech

Utilities are the second highest controllable expense for property owners, so measuring and managing consumption is critical to control costs and minimize waste. The EPA’s ENERGY STAR® Partner of the Year Award Winner Webinar Series session on October 8 focused on innovative technologies (Innovative Technologies Part 2) for achieving energy efficiency. ENERGY STAR’s Stacy Glatting was joined by Dan Egan, senior vice president of energy and sustainability for Vornado Realty Trust and Randy Moss, ENERGY STAR benchmarking team lead at Yardi. Egan and Moss shared compelling data about energy costs and talked about tech that makes significant savings possible for real estate operators. The big picture Forward-thinking commercial building operators are implementing a variety of innovative technologies for energy management. Egan shared how Vornado has piloted induction unit valves at its buildings. Moss discussed how Yardi clients have achieved cost savings and maximized performance using a smart software platform that includes artificial intelligence to manage sophisticated building controls. Data analysis from Yardi — incorporating wasted consumption estimates from ENERGY STAR — shows that after MRO, utilities are the second highest expense for real estate firms, and they are controllable with the right solutions. Consider these statistics: Estimated annual spend across controllable expense buckets for 1M sq ft in a portfolio is around $1,980,000 The average commercial building is estimated to waste 30% of its consumption Potential savings equal $600k annually for every 1M sq ft in a portfolio “It’s a data-driven proposition for energy efficiency. We must not only evaluate energy consumption for our buildings, but also more granularly understand tenant consumption and landlord/base building consumption to identify drivers of efficiency,” explained Egan. He noted that the regulatory environment in New York City and the entire state compels companies to consider utility data sources such as the carbon intensity of the grid, hourly pricing (and carbon) signals and future transmission planning when evaluating different energy efficiency projects. “ENERGY STAR® Portfolio Manager® and ENERGY STAR® Tenant Space™ provide frameworks to obtain and monitor these types of data,” added Egan. ENERGY STAR Tenant Space is a new EPA recognition for sustainability in leased office spaces. Vornado Realty Trust’s energy goals Vornado is the largest owner of LEED-certified property in the U.S. and is a member of the Climate Group EP 100. According to Egan, Vornado’s “Vision 2030 Roadmap” includes a total energy reduction goal of 50% with same-store portfolio. In 2019, the company reported progress toward that goal with a 24% reduction in energy use. “Energy efficiency goals must be a tenant partnership,” said Egan. Considering the company reported about 60% of electricity costs are recovered via tenant submeter, that’s no understatement. Egan offered these takeaways after discussing the company’s approach to energy management: Innovative technologies are sometimes tried-and-true solutions that are repackaged with automation and informed by good data to support their value One must understand energy data at different points of the supply chain (from source to end use) to understand the value streams to add to the solution stack Energy efficiency and GHG emissions reductions are often correlated but not always, and rarely linearly Regulation and market signals will drive efficiency further and shift the focus towards electrification Yardi Pulse for energy management Yardi’s Moss talked about managing energy and achieving sustainability using connected and responsive technology. For a complete energy management strategy across your portfolio, you must automate utility invoicing with the ability to mine and validate invoice data, benchmark sustainability, get real-time meter insights and detect system faults as they occur through constant monitoring. With regard to best practices, an energy management system built into your property management platform to combine all your operational data will deliver the best results. Yardi Pulse enables commercial real estate operators to manage energy intelligence and automate energy equipment to lower costs, reduce consumption, keep tenants comfortable and improve efficiency from one connected platform. Plus, Yardi Pulse loads data into...

Flexibility Holds Key Nov25

Flexibility Holds Key...

COVID-19 has had a jarring impact on commercial real estate in the form of health risks, stunted growth prospects, permit and construction delays, reduced income for property owners and the acceleration of e-commerce at the expense of physical stores, among other disruptions. The pandemic precipitated what global management consultant firm McKinsey & Company calls “an unprecedented crisis for the real estate industry.” What will the CRE landscape look like when the pandemic fades? For one thing, new building codes designed to limit the risk of future pandemics could affect standards for HVAC, square footage per person and amount of enclosed space. Office building tenants will almost certainly be driven “to look beyond their traditional building preferences. In this new environment, tenants will gravitate towards the properties that best solve for flexibility, adaptability, and well-being,” according to Erin Saven and Evan Danchenka of Gensler, a global architecture, design and planning firm. Maria Sicola, a founding partner of real estate planning services provider CityStream Solutions and sales and training consultant Integrity Data Solutions, believes tenants will likely make their space “more personalized and less communal – we will likely not return to all-private offices and fancy conference rooms. But all space – personal and meeting — will need to be viewed with more breathing room.” And, of course, cleanliness will command more attention than ever. Commercial Property Executive predicts that “some products and techniques that have been used in medical office buildings and in hospitals are going to be brought to the office sector,” such as microbe-resistant door handles and elevator buttons and sanitation with ultraviolet light. Amenities as differentiators Building owners and developers, for their part, would be well advised to explore “new real estate design strategies that can differentiate them from the competition and...

Did COVID-19 Spark Nov19

Did COVID-19 Spark

Some industries, such as technology and online media, are doing well amid COVID-19, even as the pandemic cuts a swath through virtually every public health, political, social and economic structure. Other segments of the economy, such as travel and hospitality, face a perilous future. And what about the vital energy sector? Before the pandemic hit, energy demand was projected to grow 12% between 2019 and 2030, as developing nations broadened their power generation capacities. But COVID-19 “has brought the generation of energy from fossil fuels to breaking point,” says the World Economic Forum, with global energy demand declining by 5% in 2020. Despite a larger population and world economy, demand in 2050 will be about the same as it is today, according to risk management and quality assurance experts DNV GL, due partly to the effects of COVID-19. “The scale of the fall in demand, the speed of change, and how widespread it has been have generated a radical shift that seems to be more than a temporary short-term drop in demand for fossil fuels, at least in the power sector,” Nelson Mojarro, a World Economic Forum advisor, said in June. That development has opened the door for renewable energy generation to play an even more prominent role on the world energy scene. Renewables, including solar, whose cost has fallen by 82% over a decade, are the lowest-cost source of new power generation, according to the International Renewable Energy Agency. That trend is expected to hold over the foreseeable future. And COVID-19, Mojarro says, “has had a game-changing effect in accelerating the clean energy transition in the power sector.” Within 10 weeks of the start of widespread lockdowns, according to data compiled by the International Energy Agency, the U.S. increased its renewable energy consumption...

New ENERGY STAR report Oct22

New ENERGY STAR report

An ongoing series of research reports from the U.S. Environmental Protection Agency (EPA) details information from the hundreds of thousands of buildings who use ENERGY STAR® Portfolio Manager to track energy usage. The latest report focuses on renewable energy and trends in energy metering and efficiency tracking. Onsite renewable energy systems The report studies data from over 260,000 properties, determining that less than 1% (2,447 properties) are currently generating onsite renewable energy. However, even with this low total, the use of onsite renewables has increased ten-fold in the last decade. Among the most common property types who do generate renewable energy are retail stores, K-12 schools and offices. Schools and worship facilities account for the largest number as a percentage of their total properties, still only representing 2.4% each. By comparison, only half a percent of multifamily housing properties have implemented renewable systems. Where are these systems most commonly found? According to the study, California leads the way by a wide margin with nearly 1,000 properties. That number represents more than the next 10 highest states combined. Because the source energy conversion factor is lower for onsite renewable energy, these properties have higher ENERGY STAR scores by a significant margin compared to all properties (74 to 59). Data also shows that 55% of these buildings meet less than a quarter of their electrical consumption from onsite renewables. Metering challenges and considerations There are three primary types of meters that customers use, determined by local utility company standards and building electrical systems. The report dives into the types of meters, what information they do or do not provide and how this impacts energy benchmarking and efficiency goals. Net meters spin forward or backward showing net consumption of power, but do not tell you what was imported or exported. Bi-directional meters tell you how much energy was imported and how much renewable energy was exported. The least common, dual meters have two devices, one to measure import and another for export. The main billing issue, as described in the study, is that only reporting net consumption makes it challenging to benchmark energy performance. To assess this accurately, you need all energy use, regardless of source. Portfolio Manager accurately incorporates onsite renewables into efficiency calculations. Developers may be willing to retrofit older meters with newer versions in order to capture renewable energy generated onsite exported back to the grid and the amount of grid energy sent to the building. The report goes into further detail about renewable energy certificates, inaccurate billing and metering practices, and thoroughly explains the flow chart connecting energy, meter and property. While the total number of buildings reporting onsite renewable energy continues to grow, it still represents a fraction of total properties. Data will become more available to customers as more meters support accurate measurement of onsite renewable energy. Until then, it’s hard to paint a detailed picture of efficiency and even harder to invest in a mix of strategies to achieve great energy use...

Improving Energy Efficiency Aug26

Improving Energy Efficiency

Class A commercial buildings get all the fanfare. They have the nicest amenities, the best views and, of course, the highest rent. But let’s not overlook the value that class B and C spaces bring to communities and business owners. Often located in suburban areas or lacking glamour that high rises provide, these buildings still possess many advantages and simply don’t get the same type of recognition. A recent ENERGY STAR® report stated that 94% of all U.S. commercial buildings were properties under 50,000 square feet. Because class B and C buildings significantly outnumber class A, they can lead the way in contributing to a cleaner environment, improved leasing practices and cost savings techniques. At the recent 2020 Virtual BOMA Conference, Marta Schantz, senior vice president of Urban Land Institute (ULI), explained three major challenges for class B and C owners in regard to energy efficiency: Information constraints – Stakeholders are so consumed with day to day operations that energy efficiency gets put on the backburner. Lean on your property manager for data and best practices and educate yourself about building benchmarks to understand what’s working or not. Resource constraints – These buildings don’t have the budget or staff size of class As, so they often lack someone specifically assigned to energy projects, or a third party hired to oversee this aspect of the portfolio. Funding constraints – B and C class buildings typically don’t have capital planning funds to invest in larger retrofits with up-front costs. Owners also may not be able to take on long-term debt. How can a building owner overcome some of these challenges? Primarily, there are financing options available so that B and C owners can reach long term savings goals: cost recovery in terms of lease forms, utility on-bill financing, commercial property assessed clean energy financing (C-PACE), among others. As Schantz explained, an HVAC retrofit alone may not provide the necessary ROI, but bundled with LED installation or sensor installation, it can provide long-term savings with a relatively short-term payback process. As explained in a 2020 BOMA report, class B and C properties could save 15% on energy costs with basic low- to no-cost initiatives, or even up to 35% with the larger investments detailed above. BOMA’s research has found that sustainability initiatives can reduce operating expenses for class B and C buildings between $0.26 and $0.61 per square foot and increase the net operating income for these properties between 2.4% and 5.6% per year. What are some of the simplest energy solutions to implement? According to Joey Cathcart, associate at the Rocky Mountain Institute, here are some of the best low-cost, quick payback measures for energy savings across property type: LED lighting: LEDs use significantly less energy and last much longer than incandescent lighting. Controls/Sensors: Install LED’s in high-use areas and controls or sensors in low-use areas like closets and restrooms. Programmable thermostats: Simply program your temperature setting in times of low or no occupancy. Energy audits: Establish a baseline and identify where improvements can be made. Local authorities often provide grants for these projects. Window filming or shading: Reduce demands on HVAC and reduce solar radiation with tinting or shading. Lease provisions and green leases help increase investor, owner and tenant interest. “They help to overcome split incentives, improve transparency and indicate a commitment to sustainability,” Cathcart said. He detailed three low cost components to drive the highest lease impact: Integrate new building expectations by implementing low or no cost strategies into standard operating procedures. Integrate language into leasing that includes periodic energy audits. Tenants see this as a commitment to sustainability. Document operating best practices to optimize performance in common areas and tenant spaces. “The best time to integrate provisions is either during tenant renewal or at the beginning of a new tenant lease,” Cathcart explained. Eugenia Gregorio, founder and principal at Gregorio Sustainability, presented a case study of The Tower Companies...

Experts Assess Jul15

Experts Assess

Along with tracking the momentous public health and economic implications of COVID-19, renewable energy advocates are keeping a close eye on how the pandemic is affecting the Earth’s environmental well-being. The International Energy Agency, which advocates for sustainable energy policies, reported that average global road transport activity fell by 50% of the 2019 level in the first quarter of 2020, while aviation activity declined 60%, spurring an unprecedented decline in world oil demand. The U.S. saw a 50% reduction in the use of jet fuel and 30% less gasoline consumed; meanwhile, natural gas use in commercial and residential buildings dropped by almost 20% from late March to early June of this year, according to a study of COVID-19’s effects on energy and the environment by researchers from the MIT Sloan School of Management, Yale University and Northwestern University. Reductions spark optimism “Overall, these reductions reflect a 15% total reduction in daily CO2 emissions, which is the largest annual percentage decline for the U.S. in recorded history,” says MIT Sloan professor Christopher Knittel, one of the researchers. The recent drop in consumption and emissions offers a glimpse of a cleaner future – if the effort is sustained after the crisis abates. In the wake of COVID-19, “it is essential that we build back better. We need to create a more resilient and sustainable clean energy system in order to reduce the risk of facing the catastrophic crises that climate change could bring,” says Jules Kortenhorst, CEO of the Rocky Mountain Institute, writing for the World Economic Forum. That means prioritizing structural changes that “make a real difference for the energy transition in the longer term” rather than jumping on “the bandwagon to push the green agenda in short-term relief packages,” say researchers from ETH Zurich’s...

Energy Benchmarking Jul04

Energy Benchmarking

When you invest in your energy strategy, the rewards are proportionate. Simply put, the upgrades can pay for themselves. You just have to get the ball rolling first. That was just one of the key takeaways from our recent webinar on energy efficiency with McKnight’s Senior Living. Randy Moss of Yardi led the discussion on ENERGY STAR benchmarking and best practices for providers, and he was joined by Christopher Wright from Merrill Gardens, who shared his company’s own experience with tracking energy usage and reducing spend. Merrill Gardens’ road to energy success Starting in 2016, Merrill Gardens was required to record and report their energy usage by the city of Seattle. And at first, everything was done manually. Staff were pulling data from paper bills and accounting systems to upload into ENERGY STAR for benchmarking. Eventually, the city’s utility provider enabled automated data sharing, which simplified the entire process. The state of California soon followed with regulatory requirements, and seeing the writing on the wall, Merrill Gardens began rolling out benchmarking at all of their communities nationwide. Like in Seattle, many utilities needed manual data entry at first, but nowadays, the majority allow automated data transfer. By late 2019, Merrill Gardens had a year’s worth of data, which gave them great visibility into their buildings’ usage compared to one another. “Based on those sorts of trends, we already had the ability to identify buildings to focus special attention on for CapEx and operation improvements,” said Wright. Unfortunately, the pandemic brought new hurdles, but that only sharpened their focus. “In early 2020, like everyone else, we discovered our resources were suddenly and unexpectedly limited, while at the same time, savings and operational efficiencies were even more important,” said Wright. “Partnering with Yardi over the last...

Energy Matters May27

Energy Matters

As the COVID-19 crisis drives up labor and equipment costs in senior living, providers are looking for sure-fire ways to save without sacrificing on care or quality. One avenue that few providers have pursued is energy management. Not considered a significant challenge by many, utility spend actually ranks as the third highest expense, after payroll and food. It’s also much easier to tackle from a cost-control perspective than you might think. Yes, swapping in LED light bulbs is one way to shrink the energy bill, but the real advantages (and savings) start with just knowing how much energy is used. By benchmarking your communities’ energy consumption, and you open up many possibilities to conserve. There’s more value in a cohesive energy strategy than just saving money, too. Many residents appreciate and look for a building that follows sustainable practices. In fact, the baby boomers are more eco-conscious than their Gen X and millennial counterparts are. Those over 65 are three times more likely to say they live in environmentally friendly ways “all the time.” If that weren’t reason enough to revisit your energy approach, consider that state, county and local jurisdictions are increasingly asking real estate operators — senior housing included — to record and report on their usage. Take Seattle for example. Back in 2013, the city passed a resolution in pursuit of carbon neutrality that requires non-public buildings larger than 10,000 square feet to disclose their utility benchmarking data. For Merrill Gardens, based out of Seattle, that meant they had to quickly roll out centralized utility tracking. So how’d they pull it off? And what benefits have they seen since? Join us on Tuesday, June 16, at 10 a.m. PDT (1 p.m. EDT) for a live webinar with McKnight’s Senior Living to...

What’s Ahead for Energy May06

What’s Ahead for Energy

  The U.S. Energy Information Administration, the U.S. Department of Energy’s statistical and analytical agency, provides annual projections for U.S. and world energy markets over the next 30 years. Highlights from the latest release: Overall U.S. energy consumption will grow more slowly than gross domestic product as energy efficiency continues to increase. Purchased electricity consumption will increase by 0.6% and 0.8% annually in the residential and commercial sectors, respectively, due to increased demand for electricity-using appliances, devices and equipment. In 2019, 44% of residential light bulbs were LEDs, the most efficient light bulb technology available, and 17% of commercial lighting service demand was met by LED bulbs and fixtures. By 2050, these shares will reach 90% and 88%, respectively. Energy-related CO2 emissions decrease initially then rise closer to 2050 as economic growth and increasing energy demand outweigh improvements in efficiency. After initially falling, total U.S. energy-related CO2 emissions will grow modestly in the 2030s, driven largely by increases in energy demand in the transportation and industrial sectors. Emissions in 2050 will still be 4% lower than 2019 levels. Increases in fuel economy standards will drive a 19% decrease in U.S. motor gasoline consumption through 2050. The U.S. will continue to export more petroleum and other liquids than it imports as domestic crude oil production continues to increase and domestic consumption of petroleum products decreases. Renewables/biofuels Renewables will be the fastest-growing source of electricity generation due to continuing declines in solar and wind capital costs coupled with federal tax credits and higher state-level targets. Total renewable generation will exceed natural gas-fired generation after 2045. Without distributed generation sources, particularly rooftop solar, electricity consumption in residential and commercial buildings would be 5% and 3% higher, respectively, by 2050. Generation from renewable sources will rise from 18% of total generation in 2018 to 38%. Solar photovoltaic (PV) will contribute the most to the growth in total renewable generation, increasing from 13% in 2018 to 46%. Although onshore wind generation will more than double, its share of renewable generation will go from 37% to 29%. The U.S. will add 117 gigawatts of new wind and solar capacity between 2020 and 2023. Electricity is the fastest-growing energy source in the transportation sector, increasing by an average of 7.4% per year as a result of increased demand for electric light-duty vehicles. While gasoline vehicles will remain the dominant vehicle type through 2050, the combined share of sales from gasoline and flex-fuel vehicles (which use gasoline blended with up to 85% ethanol) declines from 94% in 2019 to 81% because of growth in sales of battery electric vehicles, plug-in hybrid electric vehicles and hybrid electric vehicles. The percentage of biofuels (ethanol, biodiesel, renewable diesel, and biobutanol) blended into U.S. gasoline, diesel, and jet fuel will increase from 7.3% in 2019 to 9% in 2040. Commercial and industrial space Total delivered energy consumption in the U.S. buildings sector will grow by 0.2% annually as energy efficiency improvements, increased distributed electricity generation and regional shifts in the population partially offset the impacts of higher growth rates in population, number of households and commercial floor space. Lower costs and energy efficiency incentives will result in efficient LEDs displacing linear fluorescent lighting as the dominant commercial lighting technology by 2030. Commercial PV capacity will increase by an annual average of 3.4%. Residential space S. total delivered residential energy intensity, defined as annual delivered energy use per household, will fall by 17% between 2019 and 2050 as the number of households grows faster than energy use. Factors contributing to this decline include gains in appliance efficiency, onsite electricity generation (e.g., solar photovoltaic), utility energy efficiency rebates, rising residential natural gas prices, lower space heating demand and population shifts to warmer regions. Residential PV capacity will increase by an average of 6.1% per year, accelerated by rising incomes, declining system costs and social influences. Learn how Yardi software can increase energy efficiency...

Gold Diggers Apr24

Gold Diggers

In 2019, hundreds of organizations including real estate firms used Energy Treasure Hunts to reduce energy use by up to 15 percent and they’re hoping for even more participation in 2020. As explained on the ENERGY STAR® website, Energy Treasure Hunt teams walk around facilities looking for quick ways to save energy. Those fast fixes can add up to big savings, which is like finding buried treasure. Companies from various industries participated in the inaugural year’s Energy Treasure Hunt including AMLI Residential, Bozzuto Management, Colgate, Allergan, Kilroy Realty Corporation, Columbia Association, Boeing, Lockheed Martin and Nissan. For multifamily and commercial real estate operators, the Energy Treasure Hunt checklist, called a Treasure Map, includes a detailed audit of lighting, building envelopes (inspecting all doors and windows for gaps and damage), equipment and plug loads and HVAC systems. Using energy efficient lighting, improving insulation and managing power usage proved to be a few easy ways to save money, and thousands of dollars in potential annual savings were uncovered. Here are some highlights: Kilroy Realty Corporation found a potential annual savings of $20,300. Top savings opportunities identified: Retrofit the exterior lighting in all parking areas Retrofit lighting in all indoor common areas Conduct retro-commissioning For AMLI Residential, the audit revealed a potential annual savings of $7,800. Top savings opportunities identified: Implement checks to ensure correct set points in vacant and common areas Insulate hot water heater supply piping within the HVAC closets Use power management setting on business center and leasing office computers Bozzuto Management Company discovered a potential savings of $10,190. Top savings opportunities identified: Implement LED retrofits Install lighting controls and sensors Establish thermostat setting standardization While identifying precise dollar amounts in potential savings is exciting, even before an Energy Treasure Hunt most companies realize...

New Solar Mandate Apr09

New Solar Mandate

Sacramento is one of the first cities to renegotiate its path towards sustainable power. Since the inception of California’s rooftop solar mandate, several municipalities have scrambled to accommodate the push towards clean energy. Sacramento may be the first of many cities to take advantage of a loophole in the mandate. Community solar The California Energy Commission approved a proposal from the Sacramento Municipal Utility District (SMUD) that would allow developers to use offsite solar panel installations in some new construction. The community solar option would allow developers to explore more cost-effective options for powering homes off-site. The existing community solar provision applies to shaded apartment buildings and single-family homes. The approved proposal opens the door for developers to choose rooftop solar or SMUD’s community solar for any project in the municipality. Ethan Elkind, director of the climate program at UC Berkeley’s Center for Law, Energy and the Environment explains the implications of the new provision. “There is a really strong precedential value here,” he said. “This is a new regulation that just went into effect, and this community solar piece of it hasn’t really been tested, and so it’s going to set a precedent for years to come for how utilities and real estate developers will respond to this regulation.” New yet weakening regulation? In essence, the new mandate is already accepting exceptions. Rooftop solar advocates fear the broader implications.  Laurie Litman, member of the climate group 350 Sacramento, expressed her apprehensions: “The concern is that if it’s cheaper for developers to not put solar on people’s homes, then they’re going to opt for that choice,” says Litman. “That’s going to undermine the solar homes mandate throughout the state because then other areas and other utilities will ask for that waiver as well.” Secondly,...

Star Power Mar31

Star Power

According to the Environmental Protection Agency, using energy efficiently is one of the fastest and most effective ways to save money, reduce greenhouse gas emissions, create jobs and meet growing energy demand. Yardi has once again been named ENERGY STAR® Partner of the Year. The award celebrates companies demonstrating superior leadership, innovation and commitment to environmental protection through energy efficiency and ENERGY STAR. ENERGY STAR provides information that consumers and businesses rely on to make well-informed energy efficiency decisions. Thousands of industrial, commercial, utility, state and local organizations — including more than 40% of the Fortune 500® — rely on their partnership with the U.S. Environmental Protection Agency to deliver cost-saving energy efficiency solutions. The award acknowledges Yardi’s effort to educate and support clients with benchmarking services and technology solutions across a variety of real estate sectors. In 2019, Yardi helped more than 100 clients benchmark energy in ENERGY STAR® Portfolio Manager® for over 2,300 buildings, leading to a nearly 110 percent increase from the previous year. Yardi helped clients benchmark water in over 2,000 buildings, a 300 percent increase from 2018. In addition, Yardi actively promotes ENERGY STAR benefits, publishing more than 20 articles and providing resources for benchmarking energy performance and energy management such as  webinars, client conferences courses, executive briefings sessions and other activities. “We are very proud of our clients’ continued success in using ENERGY STAR resources to achieve their corporate and community sustainability goals and we look forward to helping them and the industry reap even more ENERGY STAR benefits going forward,” said Anant Yardi, president and founder of Yardi. The company has earned ENERGY STAR certification for its corporate headquarters in Santa Barbara, Calif., and helps its real estate clients measure success and provide visibility into their ENERGY STAR...

Get Current Mar13

Get Current

The U.S. Energy Information Administration distributes information on energy-related trends and milestones. Here’s a sampling of recent postings from the EIA’s Today in Energy news and information resource. Renewables on the rise The EIA projects that electricity generation from renewable sources such as wind and solar will surpass nuclear and coal by 2021 and natural gas in 2045. Most of the growth in renewable electricity generation comes from wind and solar, which account for about half of renewable generation today. These technologies will account for nearly 80% of the renewable total in 2050. New wind capacity is expected to continue at much lower levels after production tax credits expire in the early 2020s. Growth in solar photovoltaic (PV) capacity will continue for both utility-scale and small-scale applications through 2050 because of declining PV costs. In April 2019, U.S. monthly electricity generation from renewable sources exceeded coal-fired generation for the first time. Wind blows by hydro In 2019, annual wind generation exceeded hydroelectric generation as the top renewable source of energy generation in the U.S. for the first time. Wind generation totaled 300 million megawatthours (MWh) in 2019, exceeding hydroelectric generation by 26 million MWh. Energy consumption heats up World energy consumption will grow nearly 50% by 2050, with the growth focused in regions where strong economic growth is driving demand, particularly Asia. The industrial sector, including refining, mining, manufacturing, agriculture and construction, will account for more than half of end-use energy consumption through 2050, by which time global industrial energy consumption will reach about 315 quadrillion British thermal units (Btu). Transportation energy consumption is slated to increase nearly 40% by 2050 and is largely driven by developing countries with non-market economies. Energy consumed in the buildings sector, which includes residential and commercial structures, is...

Revisiting the 1920s Jan10

Revisiting the 1920s

Here’s a look at some energy milestones from the last time a ’20s decade dawned—a period described by Marquette University economics professor Gene Smiley as “the first truly modern decade.” Wind. In 1919, two Danish engineers advanced windmills’ state of the art by designing blades that worked like the wings of an airplane. Their “Agricco” could turn to adjust to the wind flow and automatically rotated to face into the wind. A German-developed windmill capable of producing electricity from wind and the U.S.-bred first wind power company followed in 1920 and 1922, respectively. Wind technology was superseded in the 1930s by power lines capable of transmitting electricity to rural areas. In common with other renewable energy sources, wind experienced a renaissance in the wake of the oil crises of the 1970s. Today, “renewable energy is seeing a boom in growth, with wind energy leading the way” and accounting for nearly 7% of U.S. electricity generation, according to the National Geographic. The World Wind Energy Assn. reports that global capacity for wind turbines reached 600 gigawatts by the end of 2018. There are 57,000 land and offshore wind turbines in the U.S. alone. Geothermal. At The Geysers, some 70 miles north of San Francisco, molten rock lying relatively close to the Earth’s service heats water in overlying permeable rock to very high temperatures. In 1921 an engineer drilled a geothermal well that powered a generator for lighting a local resort. In 1960, a steam-generated plant at The Geysers began generating electricity commercially. The Geysers stands today as the world’s largest commercially productive geothermal field. Its average output in 2017 was 647.7 net megawatts. Geothermal energy—which can be used for heating, cooling and generating electricity—contributes more than 3.7 gigawatts to the national grid, making the U.S....

Energy Pipeline Jan06

Energy Pipeline

The Advanced Research Projects Agency-Energy (ARPA-E), the U.S. Department of Energy’s R&D arm, has provided about $2 billion dollars for more than 800 potentially transformational energy technology projects since 2009. Here’s a sampling of projects currently receiving support from ARPA-E. Fill it up, fast.  The University of Illinois, Chicago, is designing a new high-power converter circuit architecture for charging electric vehicles quickly. “The reduced weight and size of the universal battery supercharger can enable both off-board stationary fast charging systems and [serve] as a portable add-on system for EV customers who require range enhancement and quick charging in 15 minutes,” ARPA-E says. The system’s bidirectional power flow capability enabling vehicle-to-grid dispatching offers another potential benefit. No-pain windows. Massachusetts-based thermal management solutions provider Aspen Aerogels and its partners are working on a cost-effective, silica aerogel-insulated windowpane for retrofitting single-pane windows. Silica aerogels are strong insulators that resist the flow of heat. The team’s design consists of an aerogel sheet sandwiched between two glass panes to make a double glazed pane. It would be manufactured using an innovative supercritical drying method that significantly reduces drying time. The windowpane could be used to replace, at substantially lower cost, single panes in windows whose thickness or weight preclude replacement with common double-pane units. Frozen hope. Massachusetts renewable energy technology provider American Superconductor (AMSC) is developing a freezer that doesn’t rely on harmful, inefficient liquid refrigerant systems and is more energy efficient than conventional systems. The solution uses helium gas as its refrigerant, offering hope for a safe, affordable and environmentally friendly approach to cooling. High-efficiency freezers could be mass-produced cost effectively and without polluting refrigerants. Scrap value. Lexington, Ky.-based advanced materials developer UHV Technologies Inc. is working to apply X-rays to distinguishing between high-value metal alloys found in...

New Energy Regulations Dec16

New Energy Regulations

Yardi recently hosted a series of webinars for property owners in the U.S. and Canada facing the prospect of complying with a raft of energy, water and waste benchmarking requirements. A new statewide ordinance in California, measures in a host of municipalities and the Energy & Water Reporting and Benchmarking Regulations (EWRB) in Ontario, Canada, require measurement and public disclosure of whole building energy and/or water efficiency. All told, 49 mandatory policies to leverage ENERY STAR® plus a like number of voluntary policies requiring commercial and multifamily property owners to gather, assimilate and submit data will be on the books next year. Energy experts Randy Moss, Kimmy Seago, Ashley Nelson, Carson Spraker and Ethan Arbiser used the webinar series to illustrate the process and benefits of ENERGY STAR, the industry benchmarking standard that shows how efficiently a building performs compared to other similar buildings. Challenges often associated with benchmarking include managing multiple vendors and data request processes, compiling multiple street addresses into a whole building, obtaining owner and tenant authorizations, ensuring data quality, and properly setting up data and reporting through ENERGY STAR Portfolio Manager®. As an ENERGY STAR partner that has benchmarked 320 million square feet within Portfolio Manager, Yardi has energy management software and certified experts that make collecting, assimilating and reporting required information much easier for building owners. Benchmarking steps include setting up properties in Portfolio Manager, requesting whole building utility data from providers, and verifying and submitting the data. The Yardi team also tracks regulation updates and properties’ compliance status. The webinar presenters pointed out that property managers can use information loaded into ENERGY STAR for purposes beyond compliance. These include earning certifications that exempt properties from audits and recommissioning and gaining access to low-cost green financing. Benchmarking can also help attract investors, many of whom factor ENERGY STAR scores into their investment decisions. Data gathered from benchmarking also helps property managers plan and evaluate future energy conservation measures and compete in internal and external energy-saving competitions. Learn what’s ahead in American and Canadian energy regulations and learn how Yardi, which actively manages ENERGY STAR compliance for more than 2,000 commercial and multifamily properties in many jurisdictions, can help you get...

Seasonal Savings Dec15

Seasonal Savings

If sustainability is a part of your branding, the holidays are your time to shine. Did you know that from Thanksgiving to New Year’s Day, Americans toss about one million extra tons of trash each week? The additional waste is mostly holiday packaging, wrapping, and shipping supplies. Americans are particularly wasteful with energy during the holidays, too. Households in the US consume more energy during the holidays that some countries do in a year. Multifamily properties can set new precedents for the holidays. Below are six tips to make your property more environmentally friendly and cost efficient. By implementing conservation techniques and rewarding resident participation, we can break the tradition of holiday waste. Sustainable Switches, Great and Small Do you have a healthy budget for sustainable upgrades, or are you’re advocating for Mother Earth with your bare hands? Below are a few tips for budgets of any size. Make the Switch to LEDs If you haven’t already made the switch to LED lights, do so. This includes your holiday lighting. According to Eartheasy, the average business can save about $3,700 per year, per 25 bulbs. Each LED bulb last up to 200,000 hours, meaning that you replace bulbs and strings of lights less often. Step Up Recycling After the holidays, host recycling hauls for residents. For example, invite residents to bring their outdated electronics down to a truck near the leasing office. It’s then a single trip to recycle tablets and smart phones for the entire community. (Many electronics store offer recycling services.) You can also invite a tree specialist to the property to clear Christmas trees. Some companies will bring a mulching truck and recycle trees on the spot! Improve Utility Billing Some residents decorate like there is no tomorrow. Others leave town or skip the décor...

Beat the Cold Dec11

Beat the Cold

Those summer tees and shorts are but a memory. With fall here and winter on deck, how do you stay comfortable at home without spiking your utility bills? Here’s a compilation of tips from the U.S. Department of Energy and other sources. Study up. Conduct an energy audit to find out where you can save and invest for long-term energy savings. Don’t miss sunshine. Open curtains on your south-facing windows during the day to allow sunlight to naturally heat your home. Close them at night. End the draft. According to energy services marketplace Choose Energy, up to 30% of a home’s heat can escape through low-efficiency windows. Cold air can lead into a home through cracks and gaps in windows and doorways. Covering windows and sliding doors with clear plastic film can cut about 14% from your heating bill. Install tight-fitting, insulating drapes or shades on windows that still feel drafty. Seal any gaps with caulk or weather-stripping. Check the equipment. Have your heating system serviced. Replace furnace and heater filters as needed. Air filters should be replaced monthly. Clean the flue vents on wood- and pellet-burning heaters. Reset the temp. When you’re home and awake, set your thermostat as low as possible to remain comfortable. Turn it back 10° to 15° at nighttime and when you’re gone. A smart or programmable thermostat makes this easy. Get a smart ’stat. Almost half of monthly energy costs are controlled by your thermostat, according to Efficiency Vermont, and Choose Energy says a programmable thermostat can cut heating costs by up to 12%. Cut your losses. Close your fireplace damper when not in use to keep warm air from escaping up the chimney. Install tempered glass doors and a heat-air exchange system for the fireplace. Add caulking around the fireplace...